The Labor-Management Council System in Taiwan
Chin-Chin Cheng*
I. Introduction
Implementing the Labor-Management Council is one of the ways to enforce labor
participation in Taiwan. One of the goals of labor participation is to allow the workers
to participate in the decision-making process in the enterprises. Currently, there are six
kinds of labor participation systems 1 in Taiwan. However, implementation of these
systems is not effective due to some reasons. There is no doubt that an effective labor
participation system could achieve the best interests of both employers and employees. It
has been an established government policy in Taiwan to promote the labor participation
system, especially the Labor-Management Council system. The government has declared
relevant policies and enacted related laws to promote the Labor-Management Council
system. Nevertheless, the outcome is still dissatisfactory. This paper discusses the
Labor-Management Council system in Taiwan by covering historical background, current
situation, governing laws, effect and impact, recommendations for future development of
the system. Hopefully, it would provide a comprehensive profile, find the ways to fix the
flaws, and improve efficiency of the Labor-Management Council system in Taiwan.
II. The Historical Background and Current Situation of The
Labor-Management Council System
A. HISTORICAL REVIEW
The Labor-Management Council system can trace its history back to 1929, the year
that the Factory Act was enacted. Under the Factory Act, the Factory Councils were
established to promote collective bargaining. However, the Factory Councils were not
effective at the first beginning because of political turmoil. In 1950, Taiwan government
announced the Current Political Policy which comprised two labor parts. One was to
promote labor-management cooperation based on mutual interests of employees and
employers. The other was to allow employees to participate in decision-making process
and to provide suggestions concerning labor welfare. The Factory Councils did not operate
formally until the government set up a Supervision Committee to Promote the Factory
Council in 1955. Given that implementation of the Factory Council system was fair under
*
Professor, National Chung Cheng University, Taiwan
The current labor participation systems in Taiwan include the following schemes:(1)The Labor-Management Council
system; (2)The collective bargaining system; (3) The Employee Welfare Committee system; (4) The Labor Safety and
Health Institute system; (5) The Labor Retirement Fund Supervisory Committee system; (6)The proposal for quality
control circle system.
1
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7. Taiwan
the supervision of the aforementioned Committee, the government laid down the Factory
Council Enforcement Regulation in 1956. The Regulation provides rules for election of the
Factory Council representatives, scope matters of the Factory Council, and presentation of
council agenda. The government amended the Regulation to improve the
labor-management relations in 1981. Although it has been a firm policy for the government
to promote and support the Factory Council system, the system did not work well. There
are two main reasons for the Factory Council system s failure. 2 One is employers
old-fashioned attitude. Many employers were against the idea of workers participation.
Those employers were therefore unwilling to establish or support the Factory Council
system. The other reason is workers lack of sense. For most workers at that time, wage
raise was something they cared the most at the workplace. As a result, most workers were
not aggressive to participate in employers management matters. Moreover, many workers
had a belief that workers welfare shall be fought by unions, rather than the workers
themselves. In other words, many workers expected that unions would improve labor
welfare by involving in the Factory Councils activities. The fact is that unions never
played an aggressive role in the Factory Council system, and the system by no means
performed pervasively or effectively in Taiwan.3
Given that the Factory Council system did not work well, a new system was created
as the Labor Standards Act was enacted. The Labor Standards Act was implemented in
1984. According to the Act, a business entity shall hold a Labor-Management Council to
coordinate labor-management relations, promote labor-management cooperation and
increase work efficiency. The rules for calling such meetings shall be drawn up by the
Council of Labor Affairs in concert with the Ministry of Economic Affairs, and then
reported to the Executive Yuan for approval.4 Under this provision, it shall be mandatory
for all the business entities regulated by the Labor Standards Act to hold
Labor-Management Councils. With the authorization provided by section 83 of the Labor
Standards Act, the government laid down the Regulations for Implementing the
Labor-Management Council which provides regulations for holding the
Labor-Management Council in 1985. The labor participation system in Taiwan is therefore
transformed from the Factory Council era5 to the Labor-Management Council era6 after
the enforcement of the Regulations for Implementing the Labor-Management Council.
B. CURRENT SITUATION
The Labor-Management Council has become an important channel for employers and
employees to negotiate and cooperate with each other since the enforcement of the Labor
Standards Act. The current structure of the Labor-Management Council is to enable
employers and employees to discuss various subjects related to the labor-management
relations, to reach a resolution based on majority consent, and to improve working
conditions. According to government statistics, 28,953 business entities had established
their Labor-Management Councils at the end of 2010. Of these entities, 505 were public
2
Chen-Kung Huang, Jen-Chun Wong, and Chia-Ho Lin, A Study on the Improvement of the Labor-Management Council
System in Taiwan from the Perspective of the Labor-Management Council System in Germany, the Council of Labor
Affairs of the Executive Yuan, p.6, 2010.
3
Kuang-Hao Fang, A Comparative Study of the Labor-Management Council System in the US and Taiwan, p.64, 2009.
4
Section 83 of the Labor Standards Act.
5
The scope of the Factory Council System is confined to factories only.
6
The scope of the Labor-Management Council system covers all the business entities regulated by the Labor Standards
Act.
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The Labor-Management Council System in Taiwan
and 28,448 were private (see Table 1).
Table 1: The Growth of Labor-Management Council in Taiwan
from 1986 to 2010
Public sector
Private sector
Grand total
Growth rate
End of 1986
464
464
End of 1987
460
460
End of 1988
700
700
End of 1989
835
835
End of 1990
806
806
0-3.47%
End of 1991
851
851
0+5.58%
End of 1992
430
484
914
0+7.40%
End of 1993
440
492
932
0+1.97%
End of 1994
473
497
970
0+4.08%
End of 1995
457
523
980
0+1.03%
End of 1996
458
536
994
0+1.43%
End of 1997
451
562
1,013
0+1.91%
End of 1998
491
561
1,052
0+3.85%
End of 1999
547
749
1,296
+23.19%
End of 2000
646
1,297
1,943
+49.92%
End of 2001
684
1,933
2,617
+34.69%
End of 2002
630
2,071
2,701
0+3.21%
End of 2003
552
2,364
2,916
0+7.96%
End of 2004
1,260
4,553
5,813
+99.35%
End of 2005
1,446
5,358
6,804
+17.05%
End of 2006
429
7,065
7,494
+10.14%
End of 2007
441
16,166
16,607
+121,60%0
End of 2008
466
21,649
22,115
+33.17%
End of 2009
492
23,672
24,164
0+9.27%
End of 2010
505
28,448
28,953
+19.82%
Source: Labor Statistics Databank of the Council of Labor Affairs of the Executive Yuan,
http://statdb.cla.gov.tw/statis/stmain.jsp?sys=210&kind=21&type=1&funid=q05022&rdm=plC0jby9, last
viewed: 01/07/2012.
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7. Taiwan
The statistics above show that only public entities followed the government policy to
establish Labor-Management Councils at the beginning stage. Private entities started to
organize Labor-Management Councils in 1992. The number of Labor-Management
Councils in the private sector has grown significantly since 1990, reaching 7,065 in 2006
and 28,448 in 2010. Nonetheless, the percentage of private business entities that have
established Labor-Management Councils was only 6.4%. (see Table 2).
Table 2: The Percentage of the Private Business Entities Which Have Established
Labor-Management Councils in Taiwan from 1990 to 2010
The grand total of private
entities which had established
the Labor-Management
Councils
Total number of the
private business entities
covered by the Labor
Standards Act
Percentage
End of 1991
28,851
141,848
0.60%
End of 1992
28,914
156,101
0.59%
End of 1993
28,932
166.465
0.56%
End of 1994
28,970
175,921
0.55%
End of 1995
28,980
171,158
0.57%
End of 1996
28,994
165,728
0.60%
End of 1997
11,013
167,869
0.60%
End of 1998
11,052
255,144
0.41%
End of 1999
11,296
357,278
0.36%
End of 2000
11,943
362,702
0.54%
End of 2001
12,617
360,800
0.73%
End of 2002
12,701
363,578
0.74%
End of 2003
12,916
377,116
0.77%
End of 2004
15,813
390,896
1.49%
End of 2005
16,804
415,701
1,64%
End of 2006
17,494
425,116
1.76%
End of 2007
16,607
427,907
3.88%
End of 2008
22,115
428,396
5.16%
End of 2009
24,164
436,453
5.54%
End of 2010
28,953
449,385
6.44%
Source: Labor Statistics Databank of the Council of Labor Affairs of the Executive Yuan,
http://statdb.cla.gov.tw/statis/stmain.jsp?sys=210&kind=21&type=1&funid=q05022&rdm=plC0jby9, last
viewed: 01/07/2012.
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The Labor-Management Council System in Taiwan
The statistics of Table 1 and Table 2 show that the growth rate and percentage of
private business entities having established Labor-Management Councils have increased
notably since 2000. This is because several statutes and regulations require documentation
that Labor-Management Councils have been held.7 Moreover, the Labor Standards Act
was amended in 2002 to place new items, such as extended working hours, transformed
working hours, and women s working at night, within the scope of Labor-Management
Councils. For example, section 30(2) of the Labor Standards Act provides, With the
consent of a labor union, or if no labor union exists in a business entity, with the approval
of the Labor-Management Council, an employer may distribute the regular working hours,
referred to in the proceeding paragraph, of any two workdays within a two-week period, to
other workdays, provided that no more than two hours shall be distributed to each of the
other workdays. However, the total number of working hours shall not exceed forty-eight
hours in any week. Since the union organization rate in Taiwan has been low, employees
in most business entities are not represented by unions. If such business entities plan to
adopt the aforesaid two-week transformed working hours system, they must establish
and operate Labor-Management Councils in accordance with section 30(2) of the Labor
Standards Act.
If a business entity regulated by the Labor Standards Act has a need of extending
working hours, it also has to obtain the approval from the Labor-Management Council if
there is no union organized in the business entity. Since it is common for business entities
to extend working hours in Taiwan, the total of Labor-Management Councils may be
expected to grow. There is another important incentive for business entities to establish
Labor-Management Councils. In view of the fact that it has been the government s policy
to promote the operation of the Labor-Management Council system, Taiwan government
has made it a requirement for business entities, which apply for trading on the stock market
or over the counter, to establish Labor-Management Councils. As a result, the
Labor-Management Council system shall become a common internal communication
system for most business entities in Taiwan.
In fact, according to statistics provided by the Council of Labor Affairs, 95.89% of
business entities that have held Labor-Management Councils believe that it is essential to
continue the implementation of the Labor-Management Council system. The main reasons
are the Labor-Management Council system is beneficial for both employer and employees
because employees would have more knowledge of management affairs through this
system (82.01%), decrease of labor disputes because of implementation of the
Labor-Management Council system (80.72%), and the employer has more understanding
of employees expectation because of the implementation of the Labor-Management
Council system (77.38%). Only 4.11% of business entities that have held
Labor-Management Councils do not support their implementation. The main reason is the
resolutions made by Labor-Management Councils can not be enforced because their
binding effect is weak. (see Table 3).
7
For example, some provisions in the Labor Standards Act, the Regulations for Implementing the Labor-Management
Council, and the Employment Services Act demands employers to present documents that can prove Labor-Management
Councils have been held.
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7. Taiwan
Table 3: The Reasons to Support or Be Against the Implementation of the
Labor-Management Council System
Reasons to Support the Implementation of the
Labor-Management Council System
Reasons to Be Against the Implementation of the
Labor-Management Council System
Reasons
Reasons
Percentage
Percentage
The Labor-Management
Council system is beneficial for
both employer and employees
because employees would have
more knowledge of the
management affairs through this
system.
82.01%
The resolutions made by
Labor-Management Councils can
not be enforced because of weak
binding effect.
9.94%
Decrease of labor disputes
because of implementation of
the Labor-Management Council
system.
80.72%
Employers refuse to be intervened
by Labor-Management Councils by
asserting their management rights.
1.54%
Employers have more
understanding of employees
expectation because of
implementation of the
Labor-Management Council
system.
77.38%
Employers fail to provide genuine
opportunities for the
implementation of the
Labor-Management Council
system.
2.06%
Employees are more willingly
to accept and enforce company
policies because of
implementation of the
Labor-Management Council
system.
58.87%
The disparity between the union
and the employees representatives
of the Labor-Management Council.
1.54%
Company s management
becomes more reasonable
because of implementation of
the Labor-Management Council
system.
62.9%0
The employees representatives
only consider their own benefits,
but disregard the employer s
position.
0.77%
Other reasons.
1.26%
Other reasons.
1.29%
Source: Labor Statistics Databank of the Council of Labor Affairs of the Executive Yuan,
https://statdb.cla.gov.tw/html/svy94/9408menu.htm, last viewed: 01/07/2012.
III. The Laws Governing the Labor-Management Council System
A. ESTABLISHMENT
According to the Labor Standards Act, a business entity shall hold a
Labor-Management Council to coordinate labor-management relations, to promote
labor-management cooperation and to increase work efficiency. The government afterward
laid down the Regulations for Implementing the Labor-Management Council with the
authorization of the aforementioned provision. From the wording of the aforesaid provision
of the Labor Standards Act, it is mandatory for every business entity to establish the
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The Labor-Management Council System in Taiwan
Labor-Management Council. However, a business entity will not be punished for not
setting up the Labor-Management Council under the Labor Standards Act. It is therefore de
facto optional for the business entity to establish the Labor-Management Council.
Theoretically, if a business entity determines to establish the Labor-Management Council,
it must establish the Council in accordance with the rules provided by the Regulations for
Implementing the Labor-Management Council. The truth is that a business entity would not
be punished for not establishing the Labor-Management Council, it would not be penalized
either if it fails to organize and operate the Council in accordance with the Regulations for
Implementing the Labor-Management Council.
Basically, a business entity shall establish only one Labor-Management Council. But
if a business entity has branch offices, and the total of employees hired by the branch office
exceed thirty, a separate Labor-Management Council may be convened by the branch
office.8
B. STRUCTURE
The structure of the Labor-Management Council is governed by the Regulations for
Implementing the Labor-Management Council. According to the Regulations, the
Labor-Management Council shall have an equal number of representatives from the
employees and the employer. There shall be a number of two to fifteen representatives
from each side in accordance with a total of workers employed by the business entity. If a
total of employees hired by the business entity reach one hundred or more, the number of
representatives from each side shall be no less than five.9
C. ELECTION AND DESIGNATION OF REPRESENTATIVES
Employer s representatives of the Labor-Management Council shall be selected by the
business entity from those who are familiar with business matters and well-versed in labor
affairs in the business entity.10 On the other hand, employees representatives of the
Labor-Management Council shall be elected by union members or union assembly if a
labor union is organized in the business entity. Members of the general council as well as
members of the supervisory council of a labor union in the business entity may be elected
as the workers representatives at the Labor-Management Council, provided that the
number of such representatives does not exceed two thirds of the total of the employees
representatives. 11 If there is no labor union in the business entity, employees
representatives shall be elected directly by all the employees employed in the business
entity.
Where the employees are represented by a union in a business entity, the election for
employees representative shall be conducted by the labor union. If no union is organized
in a business entity, the business entity shall notify or request the employees to assign their
representatives to conduct the election for employees representatives.
A worker who has attained 16 years of age has the right to vote for employees
representatives.12 A worker, who has attained 20 years of age and has continuously
worked in the same business entity for one year or more, may be elected as an employees
representative in the Labor-Management Council. However, the first-level managers or
8
See section 2 of the Regulations for Implementing the Labor-Management Council.
See section 3 of the Regulations for Implementing the Labor-Management Council.
10
See section 4 of the Regulations for Implementing the Labor-Management Council.
11
See section 6(1) of the Regulations for Implementing the Labor-Management Council.
12
See section 7 of the Regulations for Implementing the Labor-Management Council.
9
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7. Taiwan
supervisors who are authorized to oversee the employees on behalf of the employer are not
eligible to be elected as employees representatives.13 Although there is no qualification
restriction for the representatives, the individual s enthusiasm and experience generally
would be considered when the representatives are elected or designated.14
Expenses incurred by the aforesaid election shall be borne by the business entity. The
voting date for the aforementioned election shall be announced 10 days in advance. The
government may assign personnel to provide necessary assistance.15
In case that a business entity has hired a vast number of employees, or the employees
are employed in different departments which are distant from each other, the number of
representatives for each department may be divided and elected respectively in accordance
with the number of employees employed in each department.16
Where the number of female or male workers accounts for more than one half of the
total number of workers employed in the business entity, the number of representatives
elected from the female or male workers shall be no less than one third of the total number
of employees representatives in the Labor-Management Council.17 As to employees who
are not covered by the Labor Standards Act,18 such employees still have the rights to elect
representatives and to be elected as representatives.19
Not only the employees representatives need to be elected, the substitutes for
employees representatives also have to be elected. The number of substitutes for
employees representatives shall not exceed the grand total of employees representatives
in the Labor-Management Council. In case that any position of employees representative
is vacant or any of the representatives is unable to perform his/her duty for some reasons,
the substitute shall replace the position in due order.20 If no more substitutes are available
to fill the vacancy, a by-election shall be conducted.21
The substitute issue for employers representatives is much simpler. In case that any
position of employer s representative is vacant or any of the representatives is unable to
perform his/her duty because of job reassignment, the employer shall appoint the substitute
to replace the position.22
After all the representatives of Labor-Management Council have been elected or
appointed, a report shall be made and delivered to the local government for registration
within 15 days after the election or appointment. The same rule applies when replacement
of vacant position, by-election, or reappointment occurs.23
C. OPERATION
The term of office for each representative in the Labor-Management Council is
three-year. The employees representatives may be re-elected and the employer s
13
See section 8 of the Regulations for Implementing the Labor-Management Council
Kuang-Hao Fang, supra note 3, at 72.
15
See section 9 of the Regulations for Implementing the Labor-Management Council.
16
See section 5 of the Regulations for Implementing the Labor-Management Council.
17
See sections 6(1) and 6(2) of the Regulations for Implementing the Labor-Management Council.
18
An employee who does not fit in the definition of worker (a person who is hired by an employer to do a job for
which wages are paid) under the Labor Standards Act, such employee is not covered by the Act, and therefore is not
eligible for the rights provided by the Act.
19
See Taiwan Labor Management 2-0036547 Notice issued by the Council of Labor Affairs of the Executive Yuan,
Aug.10, 1999.
20
See sections 6(3) and 6(4) of the Regulations for Implementing the Labor-Management Council.
21
See section 10(3) of the Regulations for Implementing the Labor-Management Council.
22
Id.
23
See section 11 of the Regulations for Implementing the Labor-Management Council.
14
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The Labor-Management Council System in Taiwan
representatives may also be re-appointed. The term of office for the representative starts
from the next day of the expiration date of the previous term. If the representatives fail to
finish their term, the term of office of the new-elected representatives shall start from the
next day of the election date.24
In order to strengthen labor-management relations and to protect workers rights and
interests, all the representatives of Labor-Management Council shall do their utmost to
exercise the spirit of harmony and cooperation in the council. 25 Employer s
representatives shall be responsible to the employer, and employees representatives
elected shall be responsible to all the employees for their respective opinions expressed in
the council.
The chairman of the Labor-Management Council shall be either an employer s
representative or an employees representative. It takes turns generally. However, one
representative from each side may be appointed to act as co-chairmen when it is
necessary.26 The Labor-Management Council may set up ad hoc committees to cope with
relevant cases or important issues.27 The Labor-Management Council shall be held at least
once every three months. An ad hoc meeting may be convened when it is necessary. 28
During the meeting of the Labor-Management Council, individuals who are well-versed in
the matters under discussion may attend the meeting to answer related questions with the
consent of the council29
The meeting notice shall be delivered to all the representatives at least 7 days before
the meeting date. The agenda of the meeting shall be delivered to all the representatives at
least 3 days prior to the meeting date.30 A meeting of the Labor-Management Council
must be attended by a majority of the representatives from the employees side as well as
the employer s side. A resolution must be made after a consensus on certain issues is
reached. If the representatives of Labor-Management Council fail to reach a consensus, a
resolution may be passed with the approval from more than three fourths of the
representatives present at the meeting. The representative who is unable to attend the
meeting may provide written opinions.31
The minutes of the Labor-Management Council shall record the following items: 32
1. the serial number of the meeting.
2. The time of the meeting.
3. The place of the meeting.
4. The names of the representatives and other participants.
5. The subjects to be announced.
6. The issues to be discussed and the resolutions to be made.
7. Suggestions.
The resolutions made by the Labor-Management Council shall be forwarded by the
business entity to the labor union or to the relevant departments for implementation. If the
24
25
26
27
28
29
30
31
32
See sections 10(1) and 10(2) of the Regulations for Implementing the Labor-Management Council.
See section 12 of the Regulations for Implementing the Labor-Management Council.
See section 16 of the Regulations for Implementing the Labor-Management Council.
See section 15 of the Regulations for Implementing the Labor-Management Council.
See section 18 of the Regulations for Implementing the Labor-Management Council.
See section 14 of the Regulations for Implementing the Labor-Management Council.
See section 20 of the Regulations for Implementing the Labor-Management Council.
See section 19 of the Regulations for Implementing the Labor-Management Council.
See section 21 of the Regulations for Implementing the Labor-Management Council.
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7. Taiwan
resolutions can not be enforced, they may be proposed in the next meeting for further
discussion.33
As to the regular council affairs, the business entity shall appoint staffs to take charge
of relevant matters.34 The expenses incurred by the Labor-Management Council also have
to be borne by the business entity.35
D. SCOPE OF MATTERS
The scope of matters for the Labor-Management Council is initially regulated by the
Regulations for Implementing the Labor-Management Council. According to the
Regulations, the matters that the Labor-Management Council is allowed to deal with
include the following items:36
1. Declaration matters
(1) On the enforcement of the resolutions made in the previous meeting.
(2) On the labor movement.
(3) On the production plans and the business profile.
(4) On other relevant matters.
2. Discussion matters
(1) On issues pertaining to promotion of the labor-management relations and
labor-management cooperation.
(2) On issues relating to working conditions.
(3) On issues concerning labor welfare plans.
(4) On issues regarding improvement of productivity and efficiency.
3. Suggestion matters
When the matters discussed in the meeting of the Labor-Management Council are
regarded as suggestion matters , such matters are not required to be resolved during the
meeting. The representatives may bring up issues such as working environment,
manufacture problems, workplace safety, and provide suggestions to resolve these issues in
the meeting. There is no limitation on the nature of suggestion matters. As long as the
matters can enhance the employees participation, and the suggestions offered by the
representatives can become reference resources for employer s policy-making, any matter
may be discussed.37
The management subjects of the business entity are also regarded as suggestion
matters. If the management subject is regarded as discussion matter, such subject shall not
only be discussed, but also be resolved. In other words, resolutions must be made for such
matters. If that is the case, the management autonomy of the business entity will be unduly
intervened. In order to guarantee the employer s management autonomy, the management
subjects of the business entity are regarded as suggestion matters. Nevertheless, the line of
management subjects is not utterly clear in practice. For example, when an employer
decides to bring in new manufacture equipments, introduce new human resource system,
transfer personnel, or discharge employees, these decisions look like business subjects
from the appearance. The employer is thus not obligated to discuss these matters with the
representatives in the meeting of the Labor-Management Council. The employer only has
33
34
35
36
37
120
See section 22 of the Regulations for Implementing the Labor-Management Council.
See section 17 of the Regulations for Implementing the Labor-Management Council.
See section 23 of the Regulations for Implementing the Labor-Management Council.
See section 13 of the Regulations for Implementing the Labor-Management Council.
Kung-Hao Fang, supra note 3 at 73.
The Labor-Management Council System in Taiwan
to declare these decisions in the meeting of the Council. Nonetheless, employees
cooperation still may be needed in some cases when the employer intends to enforce
his/her management policy. In case that the employees collaboration is needed, the
employer s management decisions very likely will be regarded as the matters pertaining to
the promotion of the labor-management relations and labor-management cooperation, and
therefore still need to be discussed and resolved in the meeting of the Labor-Management
Council. As a result, it can be said that the room for employees to participate in the
policy-making process of a business entity is reserved under the design of the
Labor-Management Council system.38
In order to intensify the function of the Labor-Management Council, Taiwan
government has broadened the scope of matters for the Labor-Management Council by
amending the relevant statutes and utilizing administrative regulations. Currently, holding
the Labor-Management Council becomes an essential requirement for the following
matters:
1. Working hours arrangements and adjustments
The Labor Standards Act was amended in 2002. According to this amendment, the
stipulation of regular working hours is shortened39 the provisions of deformed working
hours are added40 The regulations regarding extending working hours41and the rules
governing female employees working at night are modified. 42 Under the aforesaid
provisions, an employer shall not adjust or extend the working hours or demand his/her
female employees to work between ten o clock in the evening and six o clock in the
following morning unless the decision is made with the consent of a labor union. If no
labor union is organized in the business entity, then the aforementioned decision must be
made with the approval of the Labor-Management Council. Employers violation of the
provisions mentioned above shall be punished by an administrative fine of not less than
NTD$20,000 but not exceeding NTD$300,000.43 Since unions are not organized in most
business entities covered by the Labor Standards Act, such employers have to establish and
manage the Labor-Management Council in order to have more flexibility in working-hour
38
Chia-Lin Wu, Corporate Governance and Labor Participation---An Examination of the Labor-Management Bargaining
System, Thesis of Graduate Institute of Financial and Economic Law of Feng Chia University, p.71, 2009.
39
Section 30(1) of the Labor Standards Act provides A worker shall not have regular working time in excess of eight
hours a day and eighty-four hours every two weeks.
40
Sections 30(2) and 30(3) of the Labor Standards Act provide With the consent of a labor union, or if there is no labor
union exists in a business entity, with the approval of a Labor-Management Council, an employer may distribute the
regular working hours, referred to in the proceeding paragraph, of any two workdays in every two weeks, to other
workdays, provided that no more than two hours shall be distributed to each of the other workdays. However, the total
number of working hours shall not exceed forty-eight hours every week. With the prior consent of the labor union, or if
there is no labor union exists in a business entity, with the agreement of a Labor-Management Council, an employer may
distribute the regular working hours, referred to in the first paragraph, in every eight weeks, provided that the regular
working time shall not in excess of eight hours a day and the total number of working hours shall not exceed forty-eight
hours every week.
41
Section 32(1) of the Labor Standards Act provides When an employer has a necessity to have his /her employee to
perform the work besides regular working hours, he/she, with the consent of a labor union, or if there is no labor union
exists in a business entity, with the approval of a Labor-Management Council, may extend the working hours.
42
Section 49(1) of the Labor Standards Act provides An employer shall not make his / her female worker perform her
work between ten o'clock in the evening and six o'clock in the following morning. However, with the consent of a labor
union, or if there is no labor union exists in a business entity, with the approval of a Labor-Management Council, and the
following requirements in each item are met, the preceding restrictions are not applied:1. The necessary safety and health
facilities are provided. 2. When there is no public transportation facilities available, transportation facilities are provided
or dormitories for female workers are arranged.
43
See section 79 of the Labor Standards Act.
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7. Taiwan
arrangement.
2. Employment of foreign workers
Section 16 of the Regulations on the Permission and Administration of the
Employment of Foreign Worker provides In applying for a permit to recruit Class B
Foreign Worker(s), an applicant employer shall submit the following documents: 1.
Application form(s) 5. Certificates issued by the municipal city government or the
counties/cities governments with respect to the following matters (1) That reserve of
employees pension has been transmitted to Workers Retirement Preparation Fund and the
Workers Retirement Pension has been appropriated in accordance with the relevant laws
and regulations... (5) That the Labor-Management Council has been held in accordance
with the relevant laws and regulations
Under the aforesaid provision, the employer who
intends to recruit Class B foreign workers must provide the government document to prove
that the Labor-Management Council has been held in the business entity. Without
providing such document, employment of Class B foreign workers is impossible. Since
employment of Class B foreign workers is very important for certain industries in Taiwan,
holding the Labor-Management Council is therefore inevitable for such business entities.
3. Massive redundancy
According to section 4 of the Protective Act for Massive Redundancy of Employees, to
implement massive redundancy of employees, the business entity shall, at least sixty days
prior to the occurrence of any of the conditions in accordance with section 2 of the Act,
inform the relevant officials of the government and other relevant agencies of its
redundancy plan by a written notice. The written notice must be given to the union to
which employees to be laid off belong in the sector or unit that is involved in massive
redundancy in the business entity. If there is no union, then the written notice shall be
given to the employees representatives of the Labor-Management Council. The business
entity shall be fined for an amount of not less than NT$ 100,000 but no more than NT$
500,000 for failure to submit the massive redundancy plan to the authority and relevant
agencies. The government shall order such business entity to submit the written notice
within a given time limit. If such business entity fails to comply with the government order,
it shall be fined consecutively on a daily basis unit the business entity complies with the
law.44
Within ten days from the date of submission of the massive redundancy plan in
accordance with the aforementioned provision, the employees and the employer shall
negotiate in accordance with the spirit of autonomy. In case that the employees and/or the
employer refuse to enter into negotiations or are unable to reach an agreement, the
government shall, within ten days, invite the employees and the employer to form a
Negotiation Committee to negotiate the terms of the massive redundancy plan, and to
propose alternatives if appropriate.45 The Negotiation Committee shall have five to eleven
members, including one representative designated by the government and an even number
of representatives designated by both the employees and the employer. The representative
designated by the government shall act as the chairman of the Negotiation Committee.
Representatives of the employer shall be designated by the employer, and the
representatives of the employees shall be designated by the union. If there is no union, the
44
45
122
See section 17 of the Protective Act for Mass Redundancy of Employees.
See section 5 of the Protective Act for Mass Redundancy of Employees.
The Labor-Management Council System in Taiwan
representatives of the employees shall be designated by the employees representatives of
the Labor-Management Council. If there is neither union nor Labor-Management Council
is available, the representatives of the employees shall be elected by all the employees in
the sector or unit that is involved in massive redundancy in the business entity.46
Since the economy in Taiwan has declined in recent years, massive redundancy is
unavoidable for some business entities. For business entities that have no other alternatives
but to discharge employees in great numbers, holding a Labor-Management Council is
essential in the process of massive redundancy when there is no union organized in the
business entity.
4. Labor inspection
The Council of Labor Affairs proclaims the Labor Inspection Guidelines with the
authorization of section 6 of the Labor Inspection Act. Generally, the Guidelines are
renewed once a year. The items need to be inspected are provided by the Guidelines.
Whether the Labor-Management Council has been held in the business entity is one of
the inspected items under the category of working conditions matters .47 Most business
entities are extremely concerned for labor inspection in Taiwan. Numerous items need to
be inspected during the labor inspection. The more items fail to pass the inspection, the
more administrative fines it will be. It is therefore become another incentive for business
entities to establish the Labor-Management Council.
5. Application for trading on the stock market or over the counter
Although the Council of Labor Affairs has tried its utmost to promote the
Labor-Management Council system, the result is still not satisfactory. Apparently, most
business entities do not take this issue seriously. In order to promote the
Labor-Management Council system, Taiwan government declared a new policy in 1999.
For any business entity which intends to apply for trading on the stock market or over the
counter, it must pass the scrutiny of Taiwan Stock Exchange Corporation or GreTai
Securities Market. According to the standards set up for the aforesaid scrutiny, the
following matters are taken into account for business entities which intend to apply for
trading on the stock market or over the counter:
(1)
(2)
(3)
(4)
(5)
Whether the business entity has been fined for violation of the Labor
Standards Act in recent three years.
Whether the business entity has established the Employees Welfare
Committee, sets aside and allocates employees welfare funds in
accordance with the Employees Welfare Funds Act.
Whether the business entity has held the Labor-Management
Council.
Whether the business entity has deducted a certain sum of money
every month and has deposited the same amount in a special account as
the reserve fund of retirement payment for employees.
Whether severe occupational accidents have occurred because the
business entity fails to provide necessary safety and health installations
46
See section 6(1) of the Protective Act for Mass Redundancy of Employees.
See the Labor Inspection Guidelines of 2012,
http://www.cla.gov.tw/site/business/41733649/421ee68b/421ee82f/files/101%A6~%AB%D7%B3%D2%B0%CA%C0%
CB%ACd%A4%E8%B0w-%A4%BD%A7i%AA%A9.pdf, last viewed: 2/2/2012.
47
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7. Taiwan
(6)
in conformity with the established standards.
Whether the business entity has failed to make the payment of labor
insurance fees on time, and kept refusing to make the payment upon
press for payment.
Although not every business entity would apply for trading on the stock market or
over the counter, establishing the aforementioned standards is still a reinforcement
for the Labor-Management Council system.
IV. The Effect and Impact of the Labor-Management Council
System
From the Factory Council to the Labor-Management Council, the development of the
Labor-Management Council system has encountered different challenges and problems. In
the beginning, the Labor-Management Councils were established only by business entities
in the public sector. Since these business entities are controlled by the government, the
Labor-Management Councils held by these business entities became models in accordance
with government policy. However, those models did not work well. As years went by, most
business entities in the private sector were still not interested in setting up
Labor-Management Councils. This situation did not change even after the enactment of the
Labor Standards Act. In order to enforce this policy, Taiwan government brought more
laws and regulations into force. The total number of Labor-Management Councils did
increase significantly in recent years. Many problems still exist in the Labor-Management
Council system though. To gain a deeper understanding of the effects and impact of this
system, some issues will be examined as follows.
A. BLURRED DISTINCTION BETWEEN LABOR-MANAGEMENT COUNCIL AND
COLLECTIVE BARGAINING
Unions have never been pervasively organized in the business entities in Taiwan.
Collective bargaining is therefore not an ordinary channel for employers and employees to
communicate with each other. In fact, only 43 business entities had entered into collective
bargaining agreements with unions in 2010. 48 In order to provide an alternative
communication channel for both employers and employees, the Labor-Management
Council system is created by the Labor Standards Act. According to the Act, business
entities covered by the Act shall hold Labor-Management Councils. The members of the
Labor-Management Council are composed by the representatives from both sides of the
employer and the employees. The purposes of holding the Labor-Management Council are
to coordinate labor-management relations, to promote labor-management cooperation and
to increase work efficiency. Although most business entities were not interested in holding
Labor-Management Councils, the total of Labor-Management Councils by the end of 2010
was 28,953, a number which was much higher than the total of unions in Taiwan. The
legislators did not intend to replace unions with Labor-Management Councils when they
enacted the provisions related to the Labor-Management Council. However, the
co-existence of unions and Labor-Management Councils do create some problems.
It is clear that the functions of Labor-Management Councils are different from those
of unions. However, once a business entity establishes a Labor-Management Council, its
48
124
Monthly Bulletin of Labor Statistics, Council of Labor Affairs, Executive Yuan, R.O.C., p. 40, Nov. 2011.
The Labor-Management Council System in Taiwan
employees may elect their own representatives to discuss with the employer s
representatives regarding issues such as working conditions and labor welfare. If the issues
employees are most concerned about can be resolved in the meeting of the
Labor-Management Council, many employees would lose their incentives to organize a
union. Taiwan s union organization rate has been very low, the growth of
Labor-Management Councils will certainly worsen the situation. A business entity that has
both labor union and Labor-Management Council usually witnesses the reduced role of the
union to some extent. As long as matters discussed in the meeting of the
Labor-Management Council are not against the law, there are no restrictions on the
discussion subjects. In other words, most subjects which are supposed to be handled by the
union may be dealt with by the Labor-Management Council instead. Thus disputes often
arise regarding whether certain subjects shall be handled by the union or by the
Labor-Management Council. Moreover, it is possible that the employer may manipulate
the employees representatives of the Labor-Management Council to overrule the
agreement entered into by the employer and the union. Therefore, unless the union has
more power, it would be easy for the employer to upset the negotiation process by
manipulating the Labor-Management Council.
It is by no means the legislature s intention to make the Labor-Management Council a
competitor or a replacement for the union. Nonetheless, the co-existence of unions and
Labor-Management Councils still create problems. The Labor-Management Council is
composed of representatives from both sides. It may speak for employees but also support
the employer s interests. The major function of the Labor-Management Council is to
balance both sides interests as oppose to the union s chief mission of safeguarding the best
interests of employees. Therefore, failing to draw a clear line of the natures and functions
between unions and Labor-Management Councils will certainly harm the development of
unions in Taiwan.
B. LACK OF COMPULSION
Section 83 of the Labor Standards Act provides that a business entity shall hold a
Labor-Management Council. The Act does not provide further provisions to regulate the
enforcement of the Labor-Management Council. With the authorization of the Labor
Standards Act, the government laid down the Regulations for Implementing the
Labor-Management Council to provide detailed regulations for the implementation of the
Labor-Management Council system. The wording of section 83 of the Labor Standards Act
makes it clear that it is mandatory for business entities to establish and operate
Labor-Management Councils. However, there is no penalty provision for violation of
section 83 of the Labor Standards Act. Without the authorization of the Act, the
Regulations for Implementing the Labor-Management Council is not allowed to impose
penalties on business entities which fail to organize Labor-Management Councils. It is
therefore de facto optional for business entities to establish Labor-Management Councils,
despite the wording of section 83 of the Labor Standards Act which indicates that it is
mandatory for all business entities to organize Labor-Management Councils.
Most private business entities in Taiwan are small and medium enterprises.49 For
49
There were 1,248,000 small and medium enterprises (97.68% of all the enterprises) in Taiwan. See White Paper On
Small And Medium Enterprises In Taiwan ,
http://www.moeasmea.gov.tw/lp.asp?ctNode=307&CtUnit=36&BaseDSD=7&mp=2, last viewed: 02/01/2012.
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7. Taiwan
most small and medium enterprises, 50 there is almost no motivation to organize a
Labor-Management Council. After all, most small and medium enterprises have no need to
hire foreign workers, or to trade stock on the stock market or over the counter. Therefore,
most business entities which have convened Labor-Management Councils are either
medium or large enterprises. The total number of Labor-Management Councils has
increased significantly since the government made it a condition for any business entity
which intends to apply for trading on the stock market or over the counter to hold the
Labor-Management Council. However, the rapid growth in the number of
Labor-Management Councils does not represent genuine progress in the
Labor-Management Council system. During the application process for trading on the
stock market or over the counter, some business entities have cheated by producing forged
meeting records for a non-existent Labor-Management Council, or by passing the Labor
Welfare Committee off as the Labor-Management Council, or having employees
representatives selected by the employer rather than employees electing them. In view of
the fact that there is no penalty provision for violation of the laws and regulations on the
implementation of Labor-Management Councils, it has been very difficult to put the
Labor-Management Council system into practice in the workplace.
C. THE FEEBLE EFFECT OF LABOR-MANAGEMENT COUNCIL RESOLUTIONS
According to sections 19 and 22 of the Regulations for Implementing the
Labor-Management Council, a resolution should be passed after a consensus is reached on
the issues. If the representatives on the Labor-Management Council fail to reach a
consensus on a resolution, it may be passed with the approval of more than three fourths of
the representatives present at the meeting. If a resolution cannot be passed, it may be
proposed for further discussion at the next meeting. However, it is not mandatory to
propose undecided resolutions at the next meeting, and even if a resolution is raised again
at the next meeting, the problem could still be unresolved. For this reason, it can be said
that the Regulations for Implementing the Labor-Management Council do not provide any
rules to promote the effectiveness of the resolutions.
Whether the resolutions reached by the Labor-Management Councils are legally
binding has also been a controversial issue. The Council of Labor Affairs has held that a
resolution reached by the Labor-Management Council is similar to a gentleman s
agreement. The Supreme Court in Taiwan takes a different view. In relevant cases, most
50
According to Section 2 of the Standards for Identifying Small and Medium-sized Enterprises, Small and
Medium-sized Enterprises (SMEs) means that an enterprise which has completed company registration or business
registration in accordance with the requirements of the laws, and which conforms to the following standards:
1.The enterprise is an enterprise in the manufacturing, construction, mining or quarrying industry with paid-in capital of
NT$80 million or less.
2. The enterprise is an enterprise in the industry other than any of those mentioned in the Sub-paragraph immediately
above and had its sales revenue of NT$100 million or less in the previous year.
For the purpose of business guidance, each of the government agencies may, in relation to such specific business
matters, base their standards for identifying a SME on the number of regular employees as noted below, in which case the
restrictions noted in the previous Paragraph shall not apply:
1.The enterprise is an enterprise in the manufacturing, construction, mining or quarrying industry and the number of its
regular employees is less than 200.
2. The enterprise is an enterprise in the industry other than any of those mentioned in the Sub-paragraph immediately
above and the number of its regular employees is less than 100.
Section 3 of the Standards further provides the definition of small-scale enterprise as a Small and Medium-sized
Enterprise with less than 5 regular employees.
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The Labor-Management Council System in Taiwan
decisions made the Supreme Court have held that the effect of a resolution reached by the
Labor-Management Council is like that of a contract.51
The Labor-Management Council is characterized in the Labor Standards Act as a
body for labor-management coordination and cooperation, and the binding effect of
Labor-Management Council resolutions is much weaker than that of the collective
bargaining agreement. Thus, it is very difficult for one party (either the employer or the
employees) to enforce a resolution when the other party refuses to comply with the
resolution.
D. INCOMPATIBLE RELATIONS BETWEEN THE EMPLOYEES REPRESENTATIVES AND
UNION
As mentioned above, to some extent the existence of the Labor-Management Council
obstructs unions development in Taiwan. While the board members and supervisors of the
union are allowed to be elected as representatives, it is in fact not easy for the union to
have a compatible position with the employees representatives. From legislative history, it
can be observed that the legislators intended to prevent unions from controlling the
Labor-Management Council. The logic of the legislators is that unions already have their
own channel through which to bargain with the employer. It is inappropriate for unions to
have control over the Labor-Management Council. There is no doubt that the nature and
functions of the union are very different from that of the Labor-Management Council.
Nonetheless, it will cause disharmony if the position of the union often conflicts with that
of the employees representatives. It would give the employer more room to manipulate the
employees representatives. As a result, it would surely harm the employees rights and
interests if the relationship between the union and the employees representatives was not
compatible.
E. HARD TO ACHIEVE PURPOSES OF THE LABOR-MANAGEMENT COUNCIL
Even if the purposes of the Labor-Management Council are stipulated unambiguously
under the Labor Standards Act, the goals of the Council are still hard to fulfill. The reasons
are as follows. First, some employees representatives do not have full knowledge of their
rights and duties. Such employees representatives rarely propose discussion subjects, let
alone having a meaningful debate with the employer s representative. The role the
employees representatives play is only an endorsement, and thus they cannot truly
perform their duties. Second, the motivation of some employers to establish the
Labor-Management Council is improper. In view of the fact that holding a meeting of the
Labor-Management Council is required by law when the employer intends to extend
working hours, to demand female workers work at night, or to apply for trading on the
stock market or over the counter, the only reason for some employers to establish the
Labor-Management Council is to discuss these matters only. Such employers would
disregard other duties of the Labor-Management Council. This also harms the functions
and development of the Labor-Management Council. Third, the employer s representatives
are not elected but designated by the employer. Such representatives do not have as much
autonomy as the employees representatives. Usually the employer s representatives need
to obtain sufficient authorization when a certain resolution needs to be made. The
employer s representatives would be unable to have a meaningful discussion with the
employees representatives if the employer s representatives are not adequately authorized.
51
Chen-Kung Huang, Jen-Chun Wong, and Chia-Ho Lin, supra note 2, at 35-36.
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7. Taiwan
In many cases, the reason that resolutions could not be made in the meeting of the
Labor-Management Council is the employer s representatives were not adequately
authorized. Such cases usually would be proposed in the next meeting for further
discussion. Sometimes they would go through several meetings before a resolution could
be reached. It is time-consuming and lacks efficiency.
V. Conclusion and Recommendations for Future Development of
the Labor-Management Council System
The implementation and development of the Labor-Management Council system is
regulated by established government policies. However, the enforcement of the system has
been dissatisfactory. There is no doubt that a well-established Labor-Management Council
may encourage voluntary labor-management negotiation and cooperation, increase
communication channels for employers and employees, prevent labor disputes, form
consensus regarding management strategies, and raise business competitiveness and
efficiency. The role of the Labor-Management Council is especially important, as unions
are not strongly organized in most of the Taiwanese enterprises. Thus, it becomes an
essential issue as to how to implement an efficient Labor-Management Council system in
Taiwan. The following recommendations are provided to solve the issues at stake.
A. STRENGTHEN THE IMPLEMENTATION OF THE LABOR-MANAGEMENT COUNCIL
BY AMENDING RELEVANT LAWS AND REGULATIONS
Since the major defects of the Labor-Management Council are related to the
inadequate laws and regulations, amending those laws and regulations is imperative. The
first step is to raise the level of the regulations which govern the Labor-Management
Council. Currently, the Labor Standards Act only provides that a business entity shall hold
a Labor-Management Council to coordinate labor-management relations, promote
labor-management cooperation and improve work efficiency. No further relevant
provisions are provided. The Labor-Management Council is mainly governed by the
Regulations for Implementing the Labor-Management Council laid down by the
government as authorized by the Labor Standards Act. The Regulations is an
administrative order with weak binding effect. Therefore, the employer would not be fined
for failing to hold the Labor-Management Council or refusing to comply with the
resolutions made by the Labor-Management Council. Under such circumstance, it is very
difficult to implement the Labor-Management Council system. Despite the government s
broadening the functions of the Labor-Management Council through its amendment of the
relevant statutes and application of administrative regulations, the effect is still limited. For
this reason, the stipulations governing the Labor-Management Council shall be upgraded to
statutes. The Labor Standards Act should be reinforced in terms of the implementation of
the Labor-Management Council. The provisions regarding proper and effective penalty for
not holding the Labor-Management Council and not complying with the resolutions made
by the Labor-Management Council shall be enacted completely. This will give the
employers stronger incentives to hold the Labor-Management Councils and comply with
the resolutions made by the Labor-Management Council.
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The Labor-Management Council System in Taiwan
B. THE FUNCTION OF THE LABOR-MANAGEMENT COUNCIL SHALL BE
DISTINGUISHED FROM THAT OF THE UNION
Since the matters which the Labor-Management Council is permitted to deal with are
not specifically limited, the Council sometimes plays a role similar to a union. Given the
fact that the union organization rate is extremely low in Taiwan, it may be positive for
employees who are not represented by unions to negotiate with their employers regarding
working conditions and labor welfare through the Labor-Management Councils. However,
it will undermine unions development if most employees depend on the
Labor-Management Council to deal with these issues.
It is not the legislatures intent to make the Labor-Management Council a competitor
or a substitute of the union. Nonetheless, the relevant laws fail to draw a clear line between
the union and the Labor-Management Council. In order to clarify the difference between
them, relevant laws and regulations must be amended. In principle, the Labor-Management
Council shall not deal with the issues that are supposed to be determined by the union
through collective bargaining. The Labor-Management Council s duties shall also be
divided in accordance with the nature of issues. If the employees are already represented
by a union in a business entity, the Labor-Management Council shall still be allowed to
discuss the collective bargaining matters. Yet the discussion process will only be deemed
the pre-bargaining process. The collective bargaining matters shall be handled by the
union only. For example, the Labor-Management Council would be allowed to discuss the
issues related to wages. The suggestions or opinions regarding such issues may be
considered by the union without binding effect. If there is a need to change the wages, a
decision made through collective bargaining is still necessary. On the other hand, in the
absence of a union in a business entity, the Labor-Management Council shall have broader
power to deal with the issues which are supposed to be handled by the union. The relevant
laws shall explicitly provide the subjects that the Labor-Management Council is authorized
to deal with. In other words, the Labor-Management Council shall not be allowed to
determine the collective bargaining subjects even in the absence of a union. The
Labor-Management Council would only be allowed to deal with the statutory matters in
accordance with the laws.
The aforesaid amendments to the relevant laws can clearly distinguish the union s role
from the Labor-Management Council s role. Each can perform their own functions without
interference with each other. The Labor-Management Council s mission would be
labor-management cooperation and labor participation in the policy-making process. The
union s task would be promotion of workers rights and welfare. The union has the right to
dispute. The Labor-Management Council has no such a right.
C. COORDINATION OF LABOR PARTICIPATION SYSTEM
There are currently six types of labor participation system in Taiwan. The details are
described in the follows:
1.
2.
The Labor-Management Council system: It is constituted by an equal number
of representatives from the employees and the employer. The purposes of
holding the Labor-Management Council are to coordinate labor-management
relations, promote labor-management cooperation and increase work
efficiency.
The collective bargaining system: The employees are organized and
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7. Taiwan
3.
4.
5.
6.
represented by the union. The union, representing the employees interests,
bargains and enters into a collective bargaining agreement with the employer
through collective bargaining. In general, once the collective bargaining
agreement is entered into force, the rights and obligations of the employer and
the employees shall be stipulated in the agreement.
The Employee Welfare Committee system: All factories, mines in the public
and private sectors, or other enterprise organizations shall set aside and
allocate employees welfare funds to process and handle employees' welfare
businesses.
The Labor Safety and Health Institute system: The purpose of holding the
Labor Safety and Health Institute is to prevent occupational accidents and
protect labor safety and health through labor participation in the
policy-making process.
The Labor Retirement Fund Supervisory Committee system: The purpose of
holding the Labor Retirement Fund Supervisory Committee is to stabilize the
quality of workers life after retirement through labor participation in
supervising the labor retirement fund.
The proposal for quality control circle system: The purpose of this system
aims to improve techniques and process, promote workers self-realization and
increase productivity through labor participation.
The aforementioned labor participation systems are separate and regulated by
different laws and regulations. The implementation of these labor participation systems has
been ineffective due to immature designs and incomplete regulations. Although the matters
involves with the aforesaid labor participation systems are diverse in nature, they do share
something in common—labor participation. Thus, the coordination and regulation of all
existing labor participation systems in one specific statute may turn out to be an effective
approach.
130